Engro Powergen Qadirpur Faces 70% Profit Decline Amid Lower Capacity Payments

Karachi: Engro Powergen Qadirpur Ltd (EPQL) reported a significant contraction in profits for the third quarter of the fiscal year 2025, as detailed in an analyst briefing held earlier today. The company revealed a 70% year-on-year decrease in its bottom-line to PkR391 million, primarily attributed to amended capacity payments and reduced financial income.

EPQL’s net sales for the quarter amounted to PkR3.4 billion, marking an 11% decline compared to the same period last year. The company’s total power generation was recorded at 208 GWh, maintaining a load factor of 45%, which is consistent with the previous year’s performance of 212 GWh.

Receivables for the company stood at PkR2.96 billion as of the end of the third quarter, an increase from PkR2.65 billion during the corresponding period in 2024. Despite this, EPQL management confirmed a 100% collection rate for the quarter.

The company’s position in the National Transmission and Dispatch Company’s merit order fell from ninth to eleventh, a change linked to fluctuations in coal prices. However, company officials expressed optimism that the ranking may improve as coal prices are expected to rise.

EPQL is currently awaiting regulatory approval to commence gas supply from the PEL field while engaging with relevant authorities, including the Private Power and Infrastructure Board and the National Electric Power Regulatory Authority. The cost of gas sourced from the Badar field is projected to be approximately US$5.5 per mmbtu. Additionally, efforts are underway to explore alternative fuels to enhance the plant’s load factor.

Looking ahead, EPQL’s management is focused on increasing the load factor and aligning dividend payouts with the company’s earnings. The company noted that this stock is not under formal coverage.